The Dallas Morning News reports that 'thousands of textbooks and other materials worth an estimated $4.6 million sit unused in an Irving school district warehouse.' "Irving ISD (Independent School District) officlas says the problem stems from two major factors: the increased use of computer-based instructional materials and the reluctance to issue textbooks to each student for fear they might lose or damage them."

Now, let's see - the starting salary for a teacher in Irving is approximately $46,000. $4.6 million dollars of books sitting in a warehouse unused. That's 100 additional teachers that could be in classrooms making a difference in the lives of children in Irving. Someone needs to fire a few administrators!

Gillian Parrillo
The Sacramento Executive

Posted by Pierre Cutler at 7:57 AM | Permalink | Comments (0) | TrackBacks (0)

News flash (thanks to The Dallas Morning News and the Sacramento Bee): Farmers, if our troops harm your opium fields, do not dispair! The U.S. government will pay for the damage!

Marines retrieved bottled water Sunday from a pallet that parachuted off course into an opium field in Qalanderabad. Marines assured the Afghan farmer that he would be paid for the crop damage. The Dallas Morning News

The above photo (black and white version) and the caption were actually published in my Dallas newspaper today. I found the color version of the photo on the Sacramento Bee website.

Amazing!

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 4:26 PM | Permalink | Comments (0) | TrackBacks (0)

How are the companies that Jim Collins chronicled in his 2001 mega-hit bestseller book “Good To Great” doing?

Recall the questions his book raised? Why some companies make the leap and others don’t?

How can good companies, mediocre companies, even bad companies achieve enduring greatness? … For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?

Nucor (NYSE: NUE), the best company at harnessing culture and technology to produce low-cost steel, produced a stellar annual return on investment of 20.6% (from January 1, 2001 to March 20, 2009; includes dividends). The S&P 500 Index was down 6.4% per year over the same timeframe. So far so good - I mean so great! Nucor seems to be “Built To Last”!

What about the other ten? Well, not so great! And not even good! Just plain lousy!

• Abbott (NYSE: ABT) 2.6% annual ROI (price fell from $48.44 to $47.54; total dividends $12.51);
• Circuit City (NASDAQ: CTTYQ) –11.7% annual ROI (price fell from $16.06 to 0; total dividends $5.79; the company closed its doors in February);
• Fannie Mae (NYSE: FNM) –20.1% annual ROI (price fell from $86.75 to $0.70; total dividends $13.04);
• Gillette 5.0% annual ROI (Procter and Gamble (NYSE: PG) acquired Gillette in 2005 for $57 billion; price rose from $35.94 to $44.45; total dividends $9.24; assumes .975 share of PG per share of Gillette);
• Kimberly-Clark (NYSE: KMB) –1.4% annual ROI (price fell from $70.69 to $45.98; total dividends $16.79);
• Kroger (NYSE: KR) –2.7% annual ROI ( price fell from $27.63 to $20.71; total dividends $1.39);
• Altria (NSYE: MO) 1.2% annual ROI (price fell from $44.00 to $16.78; total dividends $31.85):
• Pitney Bowes (NYSE: PBI) –0.1% annual ROI (price fell from $33.13 to $21.84, total dividends $11.06);
• Walgreen Company(NYSE: WAG) –5.3% annual ROI (price fell from $41.81 to $24.29, total dividends $2.55);
• Wells Fargo (NYSE: WFC) –2.5% annual ROI (price fell from $27.84 to $13.99; total dividends $8.55.

Jim Collins makes a living teaching leaders throughout the corporate and social sectors. I hope they don’t pay too much, because they may not get a great return on their investment (sorry for the pun!). So much for Jim Collins' expertise on enduring great companies!

Collins' book, "Good To Great" has been a big rage. Over 3 million copies have been sold. Is the herd mentality at work here? I'm reminded by an old saying, "just because 99 out of 100 people think an idea is a good idea, that doesn't make it a good idea".

I paid $29.99 for this eight-year old book last month. Can I get my money back? I expect this book will be on the clearance table soon.

Perhaps Collins’ sequel will be “From Good To Great, To Bad To Gone”.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 2:21 PM | Permalink | Comments (0) | TrackBacks (0)

Another fabulous evening is on tap when California Lectures welcomes Jim Lehrer to Sacramento's Crest Theater on April 2nd at 7:30PM.

Jim Lehrer is the acclaimed author of 18 novels, two memoirs and three plays. He is the executive editor and anchor for The NewsHour with Jim Lehrer on PBS and has been the moderator for 10 nationally televised debates among candidates for the presidential elections.

Turn on the NewsHour on PBS and remember how news anchors used to be smart and insightful and respectful. Remember how much we miss that. Then jump online and buy tickets to see Jim Lehrer in person.

Tickets are $27 (students are $15) and can be bought through Tickets.com

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 4:23 PM | Permalink | Comments (0) | TrackBacks (0)

I often talk about the time value of money and how a 12% return on investment per year will make you a millionaire. Usually, when I mention 12% annual return, my friend Ed Ring will respond, questioning my sanity in planning for such a high rate of return. For example, Ed recently wrote:

"Your assumption about a 12% return is a reflection of the exhuberance that got this country into the mess it is in today. Real rates of return on investment - in aggregate - cannot exceed the real rate of growth of the global economy, which in the 2nd half of the 20th century was 4%, the highest ever. And even that figure, 4%, is probably skewed upwards because of the internet bubble which didn't burst until a few months after 12-31-99.

While some individual investors and small funds will obviously earn real rates of return in excess of 4%, to suggest that just anyone can make a passive investment in a 401K and expect anything remotely close to 12% is delusional. Tragically, this collective delusion is appealing and contagious and is the reason pension fund managers with responsibility for millions of workers misled themselves as well as policymakers - and here we are."

Here's my offer to Ed and anyone else willing to take me up on a bet: Let's bet $100 that I can make 12% in one year (I will document my trades here at www.sacramentoexecutive.com), beginning on April 1. If I lose, I will donate $100 to Kiva.org (a great micro finance company). If you lose, you agree to donate $100 to Kiva.org. For everyone who emails me (pierre@sacramentoexecutive.com) and takes me up on the bet, I will donate $100 per bet if I lose.

Any takers?

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 5:08 PM | Permalink | Comments (0) | TrackBacks (0)

People are worried that President Obama and his White House staff are taking on too much at once. One look at this picture and I am assured they are on top of every issue. Technology, the great enabler. This is the A+ wired team.
Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 1:59 PM | Permalink | Comments (0) | TrackBacks (0)

I kid you not. Yesterday, I arrived home from a couple of days of travel (yes, I do work for a living). And this is what I found in our refrigerator:

Now if Gillian were to go on a trip and I consumed seven eggs during her journey, this is what she would see upon her return:

Yes folks, women and men handle their eggs differently!

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 3:54 PM | Permalink | Comments (4) | TrackBacks (0)

Today is the 100th anniversary of International Women's Day. And where was Gillian? In Dallas at an Ethiopian rally to speak out for the release of UDJP party chair Birtukan Mideksa. Mrs. Mideksa, the only woman leader of an opposition party in Africa and the real winner of the 2005 Ethiopian national election (but overruled by the corrupt regime of Prime Minister Meles Zenawi), has been imprisoned by the ruling government for the last 60 days. Here is the Gillian's speech:

Thank you for coming today.

My name is Gillian Parrillo. I had the pleasure of meeting many members of the Ethiopian community when I was registering voters prior to the 2008 presidential election. As they supported me then, I stand here today to support them.

As you have learned, Judge Birtukan Mideksa, the 35-year old first female leader of an opposition party in Africa has been held in solitary confinement in jail on trumped up charges since December. The only visitors allowed are her elderly mother and her 4 year old daughter. The International Red Cross and other humanitarian organizations have been denied access. Imagine if this was your daughter, your mother, the leader of your political party!

A group of courageous women have come together under the mantle of the Ethiopian Women’s Human Rights Alliance. They are writing letters to women United States Senators asking for their support. Here, in part, is what they write:

“It is pressure from the international community and specifically from the United States that compels governments such as Ethiopia—that can only survive and be viable based on foreign aid—to conform to international human rights laws. As a US partner in the Global War on Terror, the Ethiopian government must be held to a higher scrutiny in matters of human rights. Our reputation as a nation - a beacon of human rights and a stalwart advocate of freedom - rings hollow whenever we remain silent in the face of grave injustice. We know as advocates of a more just and equitable world, you share our hope for a future where all human rights and the rule of law are respected. We ask you to join us in calling for the unconditional release of Judge Mideksa and for the adherence to human rights standards by the Ethiopian government. It is our obligation as women to tell her story and urge you to take a principled position by raising your voice to demand the immediate release of Judge Birtukan Mideksa”.

I ask each and every one of you who are here today to contact your elected representatives and urge them to stand up for Birtukan and the far too many others in similar circumstances.

Pierre Cutler
The Sacramento Executive
Originally published on www.sacwomen.com

Posted by Gillian Parrillo at 5:36 PM | Permalink | Comments (0) | TrackBacks (0)

Earlier this week I saw a news report (I think on CNN) that the military recruiting business was booming because of our weak economy. However, it was noted the pool of eligible recruits is dwindling, boding difficult times ahead for recruiting when the economy recovers.

The problem? 75% of the target age group of 17 to 24 year-olds are not eligible. Why not? Potential recruits are being turned away due to medical and physical problems, mostly obesity, along with poor test scores and lack of education, drug use, criminal records and too many dependents.

That's right - too many dependents! Over 6% of 17 to 24 year-olds have too many dependents. How many dependents is too many? I'm not sure. But I will investigate and get back with you.

35% are medically disqualified and usually because the potential GI Joes and Janes are just frankly too fat. And 18% are barred because of abusing drugs and alcohol.

This is a sad commentary ... we are becoming fatter and dumber drunkards and stoners and producing offspring like hogs on the farms of Iowa.

Pierre Cutler
The Sacramento Executive

Posted by Gillian Parrillo at 2:36 PM | Permalink | Comments (0) | TrackBacks (0)

..we need to ensure that the U.S. population is educated to be competitive. How well the U.S. does will do depends on how well the Hispanic population does.

Posted by Gillian Parrillo at 11:32 AM | Permalink | Comments (0) | TrackBacks (0)

Keith Flodin was the Office Managing Partner of Ernst and Young until his death in November 25, 2008. He is sorely missed by the Sacramento business community. To celebrate his life, Ernst and Young and SARTA are hosting a ski day in Keith's memory.

Here are the details:

Location: Sierra-at-Tahoe
1111 Sierra-at-Tahoe Road
Twin Bridges, CA

When: Saturday, March 14th, 9:00am

Register: Event Registration

Cost: $68 - includes lift ticket, apres ski party, drink ticket
$22 - apres ski party and drink ticket only

Ernst &Young and SARTA invite you to join us for an informal ski/fun day to honor and remember Keith and his love for skiing and the great outdoors! We encourage all who knew Keith to join us for a day of great skiing and recreation. Family, friends and business associates are all welcome!

We plan to kick off the day and meet at the main ticket booth at 9am. Feel free to ski on your own or with friends. At 3PM, we will meet at the 360 Smokehouse inside the Grandview Lodge (top of the Grandview Lift). A great way to relax, unwind and share memories after a great day of skiing.

For more information: contact Perrin Clark 916-447-7300 perrin@sarta.org

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 3:32 PM | Permalink | Comments (0) | TrackBacks (0)

This stunning report from the Pew Charitable Trust caught my eye today in the news media -

Solomon Moore of the New York Times reports: Prison Spending Outpaces All but Medicaid

One in every 31 adults, or 7.3 million Americans, is in prison, on parole or probation, at a cost to the states of $47 billion in 2008, according to a new study.

Correction spending is outpacing budget growth in education, transportation and public assistance, based on state and federal data.

Only Medicaid spending grew faster than state corrections spending, which quadrupled in the past two decades, according to the report today by the Pew Center on the States, the first breakdown of spending in confinement and supervision in the past seven years.

The increases in the number of people in some form of correctional control occurred even as crime rates sharply declined, by about 25 percent in the past two decades.

"One in 11 African-Americans are under correctional control, one in 27 Latinos, and one in 45 white people are in prison, jail, or under correctional supervision."

• the correctional popluation has tripled in 25 years;
• 1 in 13 adults in Georgia are under correctional control;
• $52B was spent nationwide last year on Federal and State correctional control;
• 9.3% ($9.7 billion) of California's general funds was spent last year on correctional control;
• 7,232,200 of 229 million American adults (1 in 31) are under correctional control at an average daily cost of $78.95 to incarcerate each adult;
• the daily cost to keep an adult in prison in California is $134.83, up from $46.55 just ten years ago (that's a 190% increase!).

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 5:59 PM | Permalink | Comments (1) | TrackBacks (0)